In a significant move to clear historical financial clutter, the Ministry of Finance has officially appointed Punjab National Bank (PNB) as the liquidator for 32 banking companies that stopped operating long ago. At 11:38 AM, the PNB share price was up 0.84% and was trading at ₹110.36.
This decision, announced in a notification dated June 3, 2025, aims to speed up the process of closing down these inactive banks, some of which have been stuck in legal limbo for decades.
This appointment gives PNB the power to manage the winding-up proceedings for these banks, as per Section 39 of the Banking Regulation Act, 1949. These cases are currently pending before the Calcutta High Court. The move is expected to bring finality to old banking cases that have been unresolved for many years. This will positively impact the PNB share price.
The list of banks now under PNB's liquidation includes names that were once part of India's banking history. Some of them are:
The full list includes 32 entities, which are detailed in the official notification.
Most of these banks stopped their operations many decades ago. This happened due to various reasons like not having enough money (insolvency), poor management, or breaking banking rules. However, the absence of a dedicated liquidator has, until now, delayed the settlement of outstanding claims and the proper distribution of their assets.
The appointment of PNB, which is India's second-largest public sector bank, is a major administrative step. It signals a strong commitment towards finally closing these winding-up cases. The notification, issued under S.O. 2476(E) by Manasa Gangotri Kata, Director, Financial Services, is part of ongoing efforts to make India's financial system more organised and transparent.
This development is particularly important for several groups:
With PNB now in charge, the liquidation process will follow a clear legal and financial path. This will be done in line with guidelines from the Reserve Bank of India (RBI) and orders from the court.
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This official notification shows the government's strong commitment to clearing out old financial issues and making the Indian banking sector more efficient. For everyone involved with these listed banks, this means they can now expect a more structured and open process to resolve these long-standing matters.
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Published on: Jun 4, 2025, 11:45 AM IST
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